SEMI's Book-to-Bill Dips Below 1.00 in October
By Colleen Taylor -- EDN, November 17, 2006
North American-based manufacturers of semiconductor equipment posted $1.5 billion in orders in October on a three-month average basis, and a book-to-bill ratio of 0.95, according to the latest book-to-bill report published today by trade group Semiconductor Equipment and Materials International (SEMI).
A book-to-bill of 0.95 means that $95 worth of orders were received for every $100 of product billed for the month. These book-to-bill results from SEMI echo recent statements by analysts that the industry has hit a slump of sorts due to an inventory overload. The $1.5 billion bookings figure is almost 9 percent below the final September level of $1.64 billion, and 37 percent above the $1.09 billion in orders posted in October 2005.
The three-month average of worldwide billings in October 2006 was $1.57 billion. The billings figure is 6 percent below the final September level of $1.67 billion, and over 37 percent higher than the October 2005 billings level of $1.15 billion.
"Total orders for semiconductor equipment have declined from the peak levels posted back in June of this year, though they are significantly higher than levels reported one year ago," Stanley Myers, president and CEO of SEMI, said in a statement. "There has been a gradual decline over the past three months, as the industry absorbs new capacity."
